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Suggest pagesInformation technology outsourcing
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This article only describes one highly specialized aspect of its associated subject. Please help improve this article by adding more general information. The talk page may contain suggestions. (October 2009) |
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Information technology outsourcing or ITO is a company's outsourcing of computer or Internet related work, such as programming, to other companies. It is used in reference to business process outsourcing or BPO, which is the outsourcing of the work that does not require much of technical skills.
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[edit] IT outsourcing drivers
The reasons for IT outsourcing include lack of resources and cost reduction. IT Outsourcing is sometimes called IT Enabled Services (ITES) Outsourcing.[citation needed]
[edit] Overseas ITO to India and China
The typical destinations of overseas IT outsourcing are India and Philippines for the American and European companies and China for the Japanese companies.
[edit] Outsourcing information technology to Asia
A combination of high overhead in the United States and strong cultural ties between the domestic and Asian information technology industries have led many companies to outsource labor-intensive software programming to Asia and Eastern Europe.[citation needed]
India has always been a major player in information technology (IT); they even make their own supercomputers for predicting monsoons. It wasn't until the Y2K bug emerged that the need for legions of cheap programmers really arose, however, and American companies began to see the potential for outsourcing overseas. After Y2K the IT service industry exploded, with American companies outsourcing everything from data entry to customer service to India and other Asian countries.
Despite its distinct advantages for companies looking to outsource their IT services, India's volatile political climate and rampant corruption present problems. Some of the 185 Fortune 500 companies that outsource software to Asia are choosing places like Vietnam or China with more predictable politics and less corruption. Other companies that outsource their customer service are finding that their customers prefer the Americanized English of the Philippines to the British English that predominates in India, though all of these countries have their drawbacks, from censored Internet lines in China and Vietnam to Muslim militancy in the Philippines.
Despite the hiccups the IT service industry continues to grow as the software industry becomes more competitive and U.S. companies try to reduce overhead. The Asian IT service market is still in its infancy, but by 2008 industry think tank Nasscom-McKinsey predicts a $17 billion IT service industry in India alone.[citation needed]
[edit] Outsourcing Tools
| Category | Tools |
|---|---|
| Communications | EMail, Skype, Video Conference, etc; |
| Business Requirements Prototyping | Microsoft Office, iRise, Rational Requisite Pros and Rational Rose (from IBM) |
| Source Control | Assembla |
| Code Quality Analysis | List of tools for static code analysis |
| Project Management | Comparison of project management software |
| Testing | Test Director, Mercury Quality Center (for test cases and testing), |
[edit] See also
- Offshore programming
- Software testing outsourcing
- Website Management Outsourcing
- Outsourcing
- Offshoring
- Offshoring Research Network
- Globalization
